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The CREDIT CARD is now a days an essential payment method for all of us, wherever we go, whatever we buy, its the credit card that we use to make the payment. It is something that has changed our behavior as a "CUSTOMER" of making the payment and spending money on the things (most of what we actually don't need).


This model is about LUST, CUSTOMER WTA & WTP, DESIRE to get the things, which, most of the times are NOT possible to achieve with the money in hand. With the credit card customer can now spend more & more frequent on everything & can live a lifestyle which was otherwise not possible. The Credit Card brings out the hidden desires to BUY & SPEND and it gives a form of EASY MONEY to the CUSTOMERS so that they can SPEND more and more than they actually earn, But it benefit the MARKET & BUSINESSES at last.


First lets get to know the two cases which affect the customer behavior drastically (LUST FACTOR):

1. In the normal case, if you have $100 without any credit then you are bound to spend only that $100 in whatever way or manner you can. You simply cannot spend $101 because nobody is going to give you that extra $1 for no reason. This creates an impact on the Economy where the CUSTOMER's demand is determined how much he earns and how much his pocket allows him to spend. The companies therefore have to manufacture or deliver services accordingly and this growth rate is very low.

2. In the credit case, if you have only $100 in cash and $100 in credit which was given by the credit card company then as a CUSTOMER now you will SPEND or will have tendency to SPEND all of that $100 CREDIT saving your CASH. This now put a CUSTOMER in a position where he has spent the money on UNDESIRED things (most of the time) and his CAPABILITY TO SPEND is now more than 2x-4x which creates an impact on the economy as now the frequency and the money to be spend through CREDIT is more which is why Companies can offer more services or products and can LURE a customer in many forms through advertisements, mode of fear, more of necessity etc. This will make the CUSTOMER spend on the things which otherwise he WILL NEVER or WILL NOT spend if he has CASH ONLY.


1. It is proven and very effective theory that everyone wants to buy a ROLLS ROYACE provided that person is offered an Easy Monthly Installments of $100 for upto 100-500 years.

2. The credit card is offered to LURE or to increase the LUST/DESIRE or WTP factor of a CUSTOMER who is looking for a payment method that gives him flexibility, usablility & an ability to spend more than that he has.

3. Credit card companies offer a PARTIAL PAYMENT on the credit card that will ensure that the CUSTOMER will pay a monthly interest. This is a proven case, for an example: if someone has used this credit card and the monthly exp were $500 then the PARTIAL PAYMENT offered by the credit company will be just $50 and customer would love to pay $50 rather than all of $500. This happens in more than 98% cases across the globe. The rest of $450 will incur an INTEREST of UPTO 30-40%.

4. Finally, the customer who is using the Credit Card is now a MILKING COW who will pay INTEREST ON INTEREST to the Bank or the Credit Card Company for many years to come. This might look small but if a customer is paying $10 in monthly interest and there are 1 million customers then the NETT INTEREST PAYMENT or PROFITS of the Bank / Credit Card Companies are $10 MILLION a MONTH & it will keep on COMING for time to come.


1. LUST / DESIRE factor is the primary driving factor in this model

2. CUSTOMER is willing to spend more if an external source of money or flexible payment modes are offered to him OR if a ground is build to ease the payments (in credits) to the customer.

3. CUSTOMER is willing to have a payment facility if that makes his desires come true and makes his life easy in some manner.

4. If your business model is similar to the CREDIT CARD Model or if you are building a business where CUSTOMER LUST/DESIRE factor plays an important role then you must first need to understand your customer behavior, the economy, the ease of use & access etc.


Lakshman Singh

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